Brazil financial markets sell off on election anxiety
RIO DE JANEIRO, Sept 12 (Reuters) - Brazilian financial markets added to losses on Friday after an opinion poll showed President Dilma Rousseff and competing presidential candidate Marina Silva statistically tied in an expected second-round vote in October.
Brazilian stocks and currency have been posting losses over the past few days on fears that Silva, regarded by investors as the strongest option to avoid four more years of a government they strongly dislike, would lose her lead in opinion polls.
On Friday, the Brazilian real weakened to as much as 2.323 per dollar, more than 1 percent weaker on the day, as the Ibope pollster said Silva had 43 percent of voter support in a second-round vote, only one percentage point ahead of Rousseff.
Also fueling currency losses was a Reuters report with a senior economic advisor for Silva saying her government would eliminate a currency intervention program adopted by the central bank for about a year to support the real, analysts said.
"Two factors are contributing to the rise in the dollar (against the real) today," said Brazilian-based Lerosa Investimentos in a research note. "On the one hand, U.S. Treasuries yields are going up this morning ... on the other hand there are remarks by an economic adviser from (Marina's party) PSB saying that they will stop the program of currency intervention."
The benchmark Bovespa stock index dropped 1.2 percent. (Reporting by Walter Brandimarte Editing by W Simon)
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